Use the Following to Answer Questions

question 16

Multiple Choice

Use the following to answer questions:
Figure: Water and Electricity
-(Figure: Water and Electricity) Refer to the figure. Using the solid budget constraint in this diagram, if electricity costs $6 per MJ, how much does a gallon of water cost?

• A) $4
• B) $6
• C) $8
• D) $12

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Definitions:

Critical Value

A point on the distribution of a statistical test that marks the threshold for rejecting the null hypothesis.

P-value

The probability of observing results at least as extreme as those in the data, assuming the null hypothesis is true.

Level of Significance

The threshold below which a null hypothesis is rejected in a statistical test, usually expressed as a probability.

Heating Bills

Monthly or seasonal charges incurred for consuming energy to heat a residential or commercial space.